Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $106,439 per year. Other information about this proposed project follows: $ 514,200 Initial investment Useful life 10 years Salvage value $ 45,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places. 1. Accounting Rate of Return 2. Payback Period % years
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- Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $96,579 per year. Other information about this proposed project follows Initial investment $468,810 9 years Selvage value $ 47,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett Note: Round your answer to 2 decimal places. 1. Accounting Rate of Retu 2. Payback Period yearsBartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $98,389 per year. Other information about this proposed project follows: Initial investment $461,920 Useful life Salvage value 9 years $40,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. Note: Round your percentage answer to 2 decimal places. 2. Calculate the payback period for Bartlett. Note: Round your answer to 2 decimal places. Answer is complete but not entirely correct. 20.52 X % 4.90 x years 1. Accounting Rate of Return 2. Payback PeriodBartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $107,868 per year. Other information about this proposed project follows: Initial investment Useful life $521,100 10 years Salvage value $ 52,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.) 2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.) 1. Accounting Rate of Return 2. Payback Period years
- Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $113,216 per year. Other information about this proposed project follows: Initial investment $ 524,150 Useful life 10 years Salvage value $ 55,000 Assume straight line depreciation method is used. Required: 1. Calculate the accounting rate of return for Bartlett. (Round your percentage answer to 2 decimal places.) 2. Calculate the payback period for Bartlett. (Round your answer to 2 decimal places.)Harwell Printing Co. is considering the purchase of new electronic printing equipment. It would allow Harwell to increase its net income by $52,734 per year. Other information about this proposed project follows: Initial investment $ 282,000 Useful life 5 years Salvage value $ 97,000 Assume straight line depreciation method is used. Required:1. Calculate the accounting rate of return for Harwell. (Round your percentage answer to 1 decimal place.) 2. Calculate the payback period for Harwell. (Round your answer to 2 decimal places.)Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) Useful life. Salvage value Annual net income generated. LLT's cost of capital $1,800,000 $ 140,000 180,000 $ 15% 1. Accounting rate of return. 2. Payback period. 10 years Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 3. Net present value 4. Without making any calculations, determine whether the IRR is more or less than 15% Complete this question by entering your answers in the tabs below. Required 4 Required 1 Required 2 Required 3 Calculate accounting rate of return. (Round your answer to 1 decimal place.) Accounting Rate of Return
- Baird Rentals can purchase a van that costs $110,000; it has an expected useful life of five years and no salvage value. Baird uses straight-line depreciation. Expected revenue is $40,425 per year. Assume that depreciation is the only expense associated with this Investment. Required a. Determine the payback period. Note: Round your answer to 1 decimal place. b. Determine the unadjusted rate of return based on the average cost of the investment. Note: Round your answer to 1 decimal place. (l.e., .234 should be entered as 23.4). a. Payback period b. Unadjusted rate of return years %answer is 4.3 years Please show your solution MANUALLY. don't use excel or financial calculator. Avalon Inc. is considering a new investment. The initial cost of the machinery is $184,000. Avalon expects the machinery to have a five-year useful life, with a $10,000 salvage value. Annual depreciation expense is computed as $34,800. Annual before-tax operating cash inflows are $67,000. Assume an effective tax rate of 30% and that all cash flows occur evenly throughout the year. Management has set a minimum required return of 12% for similar investments. Compute the discounted payback period in years for the potential investment.Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $164,900. The equipment will have an initial cost of $485,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $9,000, what is the accounting rate of return? Multiple Choice 34.00% 23.28% 156.37% 51.11%
- The Libby & Lacy Company is considering a new construction project for the new manufacturing plant and ask you to calculate a Net Present Value analysis. The investment for the land parcel is $235,000. The manufacturing plant will be completed at the end of year 1 and costs $388,000. The company expects to increase revenue for the next ten years, : (Yr 1) $225,000, (Yr 2) $328,000, (Yr 3) $164,000, (Yr 4) $143,000, (Yr 5) $116,000, (Yr 6) $110,000, (Yr 7) $95,000, (Yr 8) 74,000, (Yr 9) $40,000, and (Yr 10) $15,000. The roadway to the plant will need to be repaved twice and will cost: (Yr 4) $38,000, and (Yr 8) $67,000. The fixed manufacturing overhead for the company will cost an additional $44,000 each year for the 10 years. Prepare a Net Present Value table using a 12% factor.Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $185,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $40,536. Click here to view PV table.What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 13%.)Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 1imos) $ 840,000 Useful life: 10 years Salvage value $ 120,000 Annual net income generated LLT's cost of capital $ 70,560 14% Assume straight line depreciation method is used. Required: Help LLT evaluate this project by calculating each of the following: 1. Accounting rate of return. 2. Payback period. 3. Net present value. 4. Without making any calculations, determine whether the IRR is more or less than 14%. Complete this question by entering your answers in the tabs below.